McGuire Named Tweeter CEO
Canton, Mass., Consumer electronics retailer Tweeter Home Entertainment Group named Joe McGuire as president and CEO. McGuire has been serving as interim CEO since March 15. He said today that the company would soon release its third quarter earnings report. “We need an extra day or two to complete the review of our accruals and reserves around our restructuring charges and discontinued operations allocation from our store closing plan,” he said. “Many of these constitute significant estimates on the company’s part, and we want to be sure that we are comfortable with them.”
Safeway’s Sales Increase
Pleasanton, Calif., Safeway saw its comparable-store sales increase 3.3% and its identical-store sales increase 2.8% for the second quarter of 2005. The company’s total sales increased 4.7% to $8.8 billion for the second quarter of 2005. Last year, Safeway’s total sales were $8.4 billion for the second quarter.
Safeway believes the increase is due to its marketing strategies and recovery from the strike in Southern California last year. Steve Burd, chairman, president and CEO of Safeway, said, “Our strategy to differentiate our offering has resulted in broad-based sales improvement.”
Net income for Safeway, however, decreased for the second quarter. This year’s income was $134 million while last year’s was $155.2 million.
Food Lion Hires Ex-Kroger Exec
Salisbury, N.C., Food Lion hired Derrick Penick, a former merchandiser for Kroger, as senior VP of fresh merchandising and distribution. He replaces Cathy Green, who is now senior VP of retail operations.
Penick was most recently VP of merchandising at Kroger’s King Soopers division in Denver. Before that position, he had several other posts with Kroger including group VP of perishables, VP of merchandising, meat director and store manager.